Marketing activity in general and customer loyalty programs in particular require a profound knowledge of the addressee – of Company’s Target Customer. The issue that provokes the major part of concerns is who this Target Customer is and which is the appropriate principle to identify him.
LifeStyle Marketing has a special module to enable Retailer to find the right answer to this question – LifeStyle Segmentation.
LifeStyle Segmentation – what is it?
Consumer’s way of living – his lifestyle – is the factor that determines his/her purchasing behavior (preferences, shopping schedule and geography, etc.).
LifeStyle Segmentation uses this knowledge to model Customer Behaviour and to receive an automatically discovered Target Customer Portrait – for every loyalty program event (marketing promotion, special event, etc.). The objective is to maximize their profitability and the whole program’s success in the end.
- Design a buyer behavior model
- Determine sets of behavior parameters that would allow to distinguish profitable (potentially profitable) buyers from unprofitable ones
- Build Target Customer portrait
- Apply an individual approach when addressing customers (when planning coming promotions and assessing their financial result)
- Assure economic efficiency of every planned marketing event
- Employs primary data – history of Customer buying behaviour
- Doesn’t require preliminary data adjustment
- Assures thorough insight into Customer spending patterns including reaction to marketing campaigns
- Presents a basis for target marketing (Customer-centric expenses)
- Improves accuracy when calculating expected profitability of promotional campaigns